San Diego housing prices continue to rise, with a sharp increase in the most recent months.  Find out why and if we are going to see foreclosures and a housing market crash below.

Prices continue to rise and there is high buyer demand since COVID-19 due to:

• Low inventory
• Low interest rates
• Delayed start due to shutdowns

Market Activity

• Median Sales Price: $647,000
• SP/OLP Ratio: 100%
• Days on Market: 7
• Inventory: 1.6 months

Foreclosures

I am often asked if there will be a wave of foreclosures and if the market is going to crash.

First, 42% of homes nationally are owned free and clear. The average homeowner has $177,000 in equity and fewer than 1M mortgage holders owe more than their home is worth.

In CA, 94.9% of mortgage holders are in good standing. Of the remaining mortgages, 5.0% are delinquent and 0.1% is in foreclosure and the number of delinquencies is going down.

Bottom line

Housing prices are rising due to lack of inventory. Compare where we were before and during the crash from where we are today. New listing supply is not keeping up with demand. There will be some foreclosures that hit the market, but it will be minimal because owners have high equity and short sales will be nominal. Even if/when those distressed properties come on the market, there are many dormant buyers waiting to pounce on the new supply. Prices will hold steady or continue to rise.

Watch my video below to learn more.